Correlation Between Pgim Jennison and Aqr International
Can any of the company-specific risk be diversified away by investing in both Pgim Jennison and Aqr International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pgim Jennison and Aqr International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pgim Jennison Diversified and Aqr International Defensive, you can compare the effects of market volatilities on Pgim Jennison and Aqr International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pgim Jennison with a short position of Aqr International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and Aqr International.
Diversification Opportunities for Pgim Jennison and Aqr International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pgim and Aqr is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Diversified and Aqr International Defensive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr International and Pgim Jennison is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pgim Jennison Diversified are associated (or correlated) with Aqr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr International has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and Aqr International go up and down completely randomly.
Pair Corralation between Pgim Jennison and Aqr International
Assuming the 90 days horizon Pgim Jennison Diversified is expected to generate 1.45 times more return on investment than Aqr International. However, Pgim Jennison is 1.45 times more volatile than Aqr International Defensive. It trades about 0.24 of its potential returns per unit of risk. Aqr International Defensive is currently generating about 0.01 per unit of risk. If you would invest 2,050 in Pgim Jennison Diversified on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Pgim Jennison Diversified or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Jennison Diversified vs. Aqr International Defensive
Performance |
| Timeline |
| Pgim Jennison Diversified |
| Aqr International |
Pgim Jennison and Aqr International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Jennison and Aqr International
The main advantage of trading using opposite Pgim Jennison and Aqr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison position performs unexpectedly, Aqr International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aqr International will offset losses from the drop in Aqr International's long position.| Pgim Jennison vs. Prudential Jennison International | Pgim Jennison vs. Prudential Jennison International | Pgim Jennison vs. Pgim Jennison International | Pgim Jennison vs. Pgim Jennison International |
| Aqr International vs. Western Asset Diversified | Aqr International vs. Harbor Diversified International | Aqr International vs. Pgim Jennison Diversified | Aqr International vs. The Gabelli Small |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |